CFA Practice Question

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CFA Practice Question

Which of the following is another term for the net trade cycle?

A. Cash conversion cycle
B. Inventory cycle
C. Sales cycle
Correct Answer: A

Another term for the net trade cycle is the cash conversion cycle. The net trade cycle helps the analyst understand why cash flow has improved or deteriorated.

User Contributed Comments 1

User Comment
azramirza CCC(NTC)=(Days sales O/S)+(Days of Inventory on hand)-No of days payable
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